Virginia Considers New Utility Regulatory Rules

02/06/2018 | Darrell Proctor

Virginia lawmakers are weighing legislation that would give the state more control over utilities, with some of the measures developed in concert with power companies.

State legislators are discussing the proposals, some of which are designed to lift a freeze on utility rates, which could bring refunds for ratepayers—although others warn it could cause rates to go higher. Democrat Governor Ralph Northam’s office said the measures would give the State Corporation Commission (SCC) full regulatory oversight of electric utilities.

In a statement February 5, the governor—who has said he is in favor of lifting the current freeze on electricity rates—said he wants legislation to “Give Virginians as much of their money back as possible, [and] restore oversight to ensure that utility companies do not overcharge ratepayers for power.”

A Senate panel approved a draft of the legislation on Monday. The energy rules are part of a bipartisan regulatory reform deal announced by Northam and Republican House of Delegates Speaker Kirk Cox. The governor in a statement said, “Promoting the health, safety, and prosperity of Virginians is the chief mission of our state agencies, and regulations can be a helpful tool in that mission. However, we have a responsibility to constantly evaluate every regulatory requirement and policy to ensure that it is doing its job in the least restrictive way possible.”

The state’s attorney general, Democrat Mark Herring, on Monday warned the energy legislation, which would impose limits on the ability of regulators to adjust rates, could result in higher costs for the state’s electric customers. Two utilities, Dominion Energy and Appalachian Power, have said legislation is needed to bring improvements to the state’s electric grid.

The governor said he has worked with utilities, including Dominion and Appalachian, to develop new rules, which he says would increase energy efficiency programs and bring more consumer protection for Virginia electric customers.

Northam’s office released a set of bullet points outlining the proposals before lawmakers:

Videos & Infographics

Innovative Valve Design Featured at Power Event

Everlasting Valve Co.’s self-lapping, rotating disc valve was on display during the ELECTRIC POWER Conference and Exhibition, held in Nashville, Tennessee, March 19–22, 2018. While other metal-sealed valves wear out over time, the seal in the Everlasting Valve gets tighter and stronger as it wears in. As the valve opens and closes, the disc rotates incrementally, uniformly polishing away scratches and creating an ever-tightening seal.